LondonMetric Property has transacted on £70 mln (€142 mln) of warehouse acquisitions and £50 mln of non core disposals.
The £70 mln of acquisitions consist of seven warehouses with a WAULT of 15 years, acquired at a blended net initial yield of 5.8%, rising to a minimum of 6.1% over the next two years and 6.5% after five years, with 91% of rent subject to open market reviews.
The purchases comprise a 182,000 ft2 (16,900 m2) regional logistics warehouse in Avonmouth let to Farmfoods Ltd acquired through a sale and leaseback for £26.4 mln and with five-yearly rent reviews compounded annually; and a 211,000 ft2 fully let urban logistics park in Wednesbury acquired from a pension fund for £25 mln, with a low site density of 21% and immediate asset management opportunities through open market reviews.
LondonMetric has furthermore acquired five trade warehouses in Leeds, Derby, Swindon, Bolton and Farnham totalling 113,000 ft2, acquired for £18.9 mln and let to Travis Perkins (x2), MKM (x2) and Jewson.
The £50 million of disposals consist of ten former LXi assets and a former CTPT asset, which have been sold at a blended NIY of 7.2% and in line with 31 March 2024 book values. The largest assets include a 169,000 ft2 Compass training centre in Milton Keynes sold for £23.7 mln; a 34,000 ft2 car show room in York let to Vertu sold for £10.5 mln; and a 34,000 ft2 self-storage asset in Basildon let to Lok’nStore sold for £10.0 mln.
Andrew Jones, chief executive of LondonMetric, commented: 'We have been very clear on our desire to monetise some assets acquired from our corporate takeovers. We have now sold c.£100 million of LXi assets, with 13 of the 16 non core CTPT assets also sold at an average of 14% above our original underwrite values.
'We have successfully reinvested these proceeds into high quality properties, in stronger sectors that will deliver accelerated income growth.'
